The Phoenix Suns have agreed to complete a sign-and-trade with the Lakers in exchange for multiple draft picks, Marc Stein of ESPN.com reported. Nash will receive a three-year contract worth more than $25 million.

The Arizona Republic reports Phoenix will receive first-round picks in 2013 and 2014, and second-round picks in 2013 and 2015.

The Lakers-Suns deal thwarts the New York Knicks' hopes of acquiring Nash. A report earlier on Wednesday said talks between the Knicks and Phoenix had reached "critical stages." New York would have reportedly sent a package featuring Iman Shumpert in a sign-and-trade to Phoenix.

The Suns were reluctant to trade Nash to the Lakers, their Pacific Division rivals, but owner Robert Sarver bended to a plea from Nash to be moved to a city where he could be close to his children and contend for a championship, according to Stein.

Last week, though, Nash told ESPN Radio New York that it would be difficult to play for L.A.

"I'm a bit old school. I think for me, it'd be hard to put on a Lakers jersey. That's just the way it is," he said. "You play against them so many times in the playoffs, and I just use them as an example. I have the utmost respect for them and the organization, but I think it was Larry Bird (who said) he would never play for them."

The 38-year-old Nash, a two-time NBA MVP, has played for the Suns for eight of his 16 seasons in the league. He remains healthy and is still considered one of the league's top point guards.

Nash joins a Lakers team that many believe is a solid point guard away from title contention. Kobe Bryant, Pau Gasol, Andrew Bynum and Metta World Peace headline a squad that was beaten in five games by the Oklahoma City Thunder in the Western Conference semifinals.

But speculation has naturally turned to the Lakers' potentially acquiring Dwight Howard from the Orlando Magic. Howard has said he's willing to sign a contract extension with only one team--understood to be the Brooklyn Nets--but he's always wanted to play with an elite point guard, so it's fair to wonder if the acquisition of Nash could nudge Howard toward putting L.A. back on his list.

Nash, who has not reached the playoffs since 2010, played for a Suns team that was 33-33 last season. He averaged 12.5 points and 10.7 assists.